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| Lenders deliver Vishal Retail to TPG |
| Ruchika Chitravanshi / New Delhi Aug 13, 2010, 03:26 IST |
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TPG has also agreed to reduce the moratorium period by a year.
Lenders to debt-ridden Vishal Retail have decided to accept investment firm Texas Pacific Group’s proposal to acquire the retail outfit, putting Future Group out of the race. The move came after TPG sweetened its offer.
During today’s joint meeting with lenders, lasting nearly eight hours, TPG agreed to offer some more money to the lenders, though the details were unavailable. According to one of the secured lenders, TPG has been given exclusivity in lieu of improving the deal by Rs 10-20 crore.
TPG, which has assets of $47 billion under management, has also agreed to reduce the moratorium period by a year. The banks have also stated that no other proposal for the debt restructuring (CDR) of Vishal Retail will be entertained.
 At present, Vishal Retail has signed a memorandum of Understanding with TPG which is a non-exclusive and non-binding agreement. This had allowed the company to invite other investors as well.
TPG’s proposal had received a nod from the CDR cell in March. The debt restructuring was in the works when Future Group showed interest in the beleaguered company.
Lenders discussed both the proposals and decided to go with TPG.
R C Agarwal, promoter of Vishal Retail had come out in support of TPG proposal and advised lenders to favour it.
TPG has proposed splitting Vishal into a retail trading firm and a wholesale cash-and-carry company. TPG will acquire stake in the latter, while Shriram Transport Finance Company, in which TPG has a stake will take over the retail business.
Also read: aug 12: Vishal plumps for TPG over Future
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